Supermarkets accused of swallowing beer duty rises
12 February, 2009
Stats show beer prices only marginally up in off-trade
Beer prices in pubs and bars have gone up 4.9 per cent in the last year compared to a rise of just 0.6 per cent in the off-trade.
The figures are revealed in the Office for National Statistics Focus on Consumer Price Indices for 2008.
It also reveals that wine and spirits prices have gone up by 4.9 per cent in both the on and off-trades. Tobacco has gone up by the same amount.
Jonathan Mail, head of policy and public affairs at the Campaign for Real Ale, said the discrepancy in prices between the on and off trade backs calls for the introduction of a minimum price.
He said: “These figures show that despite a near 18 per cent increase in beer duty last year the supermarkets have continued to use beer as a loss leader. The use of beer as a loss leader is accelerating the rate of pub closures and contributing to the problem of alcohol misuse.
“The supermarkets have failed to respond to public concern on irresponsible alcohol price promotions and as a result a system of minimum pricing looks increasingly likely.
"The introduction of minimum alcohol prices to prevent the sale of alcohol at a loss would generate additional VAT revenue for the government, which would allow the Chancellor to give well-run community pubs a break by freezing beer duty in the Budget."
CAMRA has backed The Publican’s campaign Make it the Minimum which calls for a minimum price of 50p per unit of alcohol sold.
For more information on the campaign visit Make it the Minimum and Sign our petition on the Downing Street website.
Readers' comments
Here's my opinion on why the government does nothing about the price of drink in supermarkets. It's because they are happy that supermarkets sell the stuff so cheap. The supermarkets are paying the tax anyway so the more booze they sell the more money the government gets, regardless of tax %. In turn, their way of showing the public they are doing something to stamp out the drunken street chaos, they are causing by probably working hand in hand with the dam supermarkets is, the SIA (shambles!!) and closing down good honest local pubs by pricing them out of the market. If community pubs shut down then whole communities of people will start buying from supermarkets.